UK small and medium-sized (SME) e-retailers have become increasingly confident towards their business growth, with eight out of ten respondents believing they will increase sales in 2016, Royal Mail’s annual tracker study into the expectations and ambitions of UK SME e-retailers revealed.
Royal Mail explained the growing business confidence by the strong sales in 2015 as seven out of ten (74%) SME e-retailers increased their sales last year – the highest level in three years: 58% reported increased sales in 2014 and 49% in 2013.
British SME e-retailers are also confident about their customer satisfaction levels: 63% believe their customers have become more satisfied in 2015. Two thirds (66%) of the respondents rated on-time delivery as a key driver of customer satisfaction, ahead of the product quality (62%) and the price of goods (57%). An easy payment process which is particularly important for mobile commerce has been rated as the fourth most important factor for customer satisfaction this year, up from eighth place in 2015.
Along with on-time delivery, the SME e-retailers recognised the importance of a good returns policy when it comes to driving customer satisfaction. Almost half (49%) of the respondents believe it makes consumers more likely to be satisfied with the service, more likely to order in the first place (45%) and more likely to become repeat customers (40%). One in four SME e-retailers plan to simplify their returns process in 2016.
In independent research, conducted by Hall & Partners in April 2015, online shoppers voted Royal Mail as their most trusted delivery brand.
The overall increase in confidence of the SME e-retailers comes despite 53% claiming that competition is more intense this year. 45% stated that the competition levels remain unchanged.
Among the new factors that the e-retailers identified as competition drivers this year are on-the-move smartphone shopping cited by 47% and price promotions named by 44%. However, the main reasons for increased competition remain the same this year with the majority (52%) of the e-retailers surveyed citing consumers’ price sensitivity and an increased number of websites.
To increase sales in 2016, seven in ten online retailers plan to increase the number of sales channels they are using with 85% planning to list on additional online marketplaces. Half of the SME online retailers intend to launch their own website.
Nick Landon, Managing Director of Royal Mail Parcels, said: “Royal Mail’s annual tracker study of SME online retailers shows that confidence is continuing to grow this year and that technology is playing an ever more important role in the retail world.
“Technology is influencing how people shop, where they shop and what they define as an excellent shopping experience. Our research shows that SME online retailers are plugged in to the needs of the shopper and they are taking actions to enable them to meet the demands of the discerning online consumer,” he added.
